The U.S. may not see much value in central bank digital currencies (CBDCs), but places like the EU have solid reasons to keep pushing forward with wholesale CBDCs, even after the recent ban by former President Trump.

On January 23, Trump signed an executive order that officially blocks the creation, issuance, and use of CBDCs in the United States. While many in the crypto community celebrated this decision, industry experts warn it could have significant impacts on other countries exploring CBDC projects, both retail and wholesale.

CBDCs are digital currencies issued by central banks. They aim to make payment systems more efficient and inclusive. Retail CBDCs are meant for everyday use by the public, while wholesale CBDCs are designed specifically for interbank transactions and securities trading.

According to Yifan He, a CBDC expert and founder of the Chinese blockchain firm Red Date Technology, Trump’s ban will slow down any retail CBDC projects in the U.S. for at least the next four years. He doubts that any country will be able to create a real retail CBDC in the next decade due to various technical hurdles and a lack of solutions.

On the flip side, while the U.S. ban might stall retail CBDCs, there’s likely to be more interest in wholesale CBDCs. Lambis Dionysopoulos from the EU Blockchain Observatory and Forum notes that these are being taken more seriously than ever. He believes they could offer an alternative to a financial system dominated by the U.S.

Countries like Russia are worried about their dependence on U.S. systems. Dionysopoulos points out that this reliance means they could be cut off from financial services at any moment. Even Christine Lagarde, the president of the European Central Bank, has stressed that a CBDC is crucial for Europe’s autonomy and security.

Given these developments and Trump’s focus on trade and tax issues, there’s potential for global wholesale and cross-border CBDC projects to grow, especially in countries that the U.S. views unfavorably. However, it seems that retail and wholesale CBDCs have limited use in the U.S. itself.

Some experts argue that CBDCs were flawed from the start. Yet, others remain optimistic about their continued development worldwide. Tomer Warschauer Nuni of Kima Network believes that countries like China, Israel, Australia, and the EU are still committed to enhancing their payment systems and maintaining monetary sovereignty through CBDCs.

Nuni adds that the EU’s commitment to a digital euro may strengthen as it seeks to establish strategic independence in payments and reduce reliance on non-European systems. He sees this as an opportunity to build the necessary connections for both centralized and decentralized financial systems, ensuring that global financial networks can thrive, no matter the regional policies.